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Leeds firms forecast jobs growth as confidence stabilises

Leeds businesses are setting their sights on growth, according to the latest business confidence report from Regus, the global workplace provider with four business centres in the city.

Despite local business confidence remaining well below the national average, the report shows that over a quarter (27%) of local firms plans to increase headcount by over 5% in the remainder of 2013 and a further tenth (9%) plans an increase of between 2% and 5%.

Over half of firms state that their recruitment drive will focus on sales and marketing staff, displaying a determination to sell their way out of the downturn.

According to the Regus Business Confidence Index, Leeds firms have registered a slight improvement in confidence over the last six months, rising 2 Index points to 89, but lag behind the UK average (94) and also behind the city’s confidence standing a year ago (92).

However combined with the positive recruitment intentions expressed in the report, the overall outlook appears rosier than a year ago.

Steve Purdy, UK managing director at Regus commented: “Although it is highly positive that firms are turning their attention to hiring, this is an expensive phase for any business and they must be careful not to over-extend themselves in this fragile economy.

“This is especially true when it comes to property; in fact nearly half of firms in Leeds report that during previous downturns they had their fingers burnt by expensive and inflexible leases.

“This time round, companies are far better equipped due to the availability and acceptance in the business world of flexible working, especially in terms of the physical workplace.

“Judging from the way we see firms using our centres, many employers are turning away from full-time, permanent office space in favour of pay-for-what-you-use models.

“Keeping overheads low and remaining agile are vital to making recruitment plans affordable and achieving sustainable business growth.”

This was posted in Bdaily's Members' News section by Mark Lane .